6 Benefits of Investing in Single-Family Rental Properties

There are many benefits to investing in single-family rental properties. If you want to get paid for what you own rather than paying to own it, single-family rental properties are your best bet. From tax write-offs to long-term property appreciation and a passive rental income, single-family rental properties offer many ways to get a bang for the buck.

Here’s an overview of all you’d be signing up for a while investing in single-family rental properties:

Regular passive income

If you’re looking for a way to save for your retirement, single-family rental properties provide an excellent opportunity for steady cash flow generation. You can set leases in place and calculate a regular passive income. Your rental demands can also increase with rising market trends in an investment property, giving you a hedge against inflation.

Appreciation potential

Home values much appreciate over time. In the last few years, residential properties have seen an average of 23% increase in their value. Experts predict that low-to-mid single-digit appreciation can be expected for residential properties in the next few years. This means that the property that you invest in today will only benefit you more with time.

Tax benefits

Rental property owners get many benefits from the IRS. The department allows tax deductions for repairs, property tax, and necessary expenses for managing the rental property. However, the most significant tax benefit you get from owning a rental property comes from writing off depreciation. This could save you thousands of dollars every year!

Diversification and low volatility

You’d be delighted to know that the returns from single-family rental properties aren’t correlated to the stock market. This means you get to diversify your investments across different assets and regional markets. Furthermore, since single-family rental properties have been considered as one of the lowest volatile investments, you’re at an advantage to get some of the highest yields with their ownership.

A tangible asset

Single-family rental properties are tangible assets, unlike bonds, mutual funds, and stocks. You have more control over them and sell them whenever you like.

Leverage

You can find financing options for single-family rental properties that can help you further diversify your assets and increase overall returns. If you’re looking to work with one of the best commercial lenders in the field, reach out to GCP Fund.

They are reputed hard money lenders that offer financing solutions for real estate investments in Philadelphia, Allentown, and Pittsburg in PA and Columbia in SC, among other locations.

Categories: Real Estate

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